Updates to Validator Compensation and Foundation Delegations

Hello Validators!

With the impending governance process to enable inflation on Mainnet Beta, we wanted to give an update regarding existing validator SOL compensation from the Solana Foundation and an update on the Foundation Delegation Program strategy that will be in place if/when inflation is enabled.

Validator Direct Compensation

Qualified validators are currently being directly compensated 1000 locked SOL / month by the Solana Foundation for their services on Mainnet-Beta. If inflation is enabled, this direct compensation will be lowered to 500 locked SOL / month and will continue for at least two months after inflation turns on.

In the event inflation is enabled, the Solana Foundation would like to continue to provide direct compensation during the initial period to help ease the transition. During this transitional period, qualified validators will therefore still be eligible for direct compensation from the Foundation in the amount of 500 locked SOL /month. Validators who receive direct compensation from the Foundation will still be eligible to receive SOL earned through commission on the inflationary rewards that accrue to stake accounts delegated to their validator node. Additionally, the Validator Direct Compensation and Foundation Delegation Program, described below, are not exclusive.

Foundation Delegation Program

As the number of nodes on Mainnet Beta continues to grow, the 100M SOL Foundation delegation will continue to be split evenly among qualified validators. In order to help support growth to a general target of 500 individual nodes, qualified validators will receive Foundation delegations of up to 200,000 SOL. This is a reduction from the current delegations of up to 250,000 SOL which exhausts the Foundation stake at our current node numbers, and does not allow for new validators. The Foundation will reduce the delegation from 250,000 SOL to 200,000 whether or not inflation is turned on.

The reduction of Foundation stake on current validators from 250,000 SOL to 200,000 SOL is planned to take place over epochs 145-147.

Baseline stake delegation: 25,000 SOL
Requirements: Commission of 10% or lower. Non-delinquency. “Qualified participant” as to be defined in the terms of service.

Bonus stake delegation: 175,000 SOL
Requirements: Node has produced a valid block in 75% or more of its scheduled leader slots in the previous epoch.

The existing Foundation delegation will be in place until the previously proposed new delegation strategy is implemented.

3 Likes

Thank you for this detailing out this change.

1 Like